What is a Car Loan EMI?

An Equated Monthly Instalment (EMI) is a fixed monthly payment you make to the lender to repay your car loan. It includes both the principal amount and the interest charged on the outstanding balance.

What is the lowest car loan interest rate in India in 2026?

In 2026, Union Bank of India and Canara Bank offer the lowest car loan interest rates starting from 7.40%–7.45% per annum for borrowers with a CIBIL score of 750 or above.

What CIBIL score is required for a car loan?

A CIBIL score of 700 or above is generally required for a car loan in India. A score of 750+ gives you access to the lowest interest rates and faster approvals.

Car & Bike Loan EMI Calculator — India 2026

Instantly calculate your monthly car or bike loan EMI. Compare SBI, HDFC, ICICI & PNB rates and plan your vehicle purchase with full clarity.

7.40%Lowest Car Loan Rate

90%Max Finance

7 YearsMax Tenure

Enter Price

Enter ex-showroom or on-road price to calculate EMI.

₹55.70 Lakh

Down Payment

₹5,57,000

Bank Interest Rate

8.5%

Loan Period (Years)

5 Years

GraphSchedule

Your EMI

₹1,02,849

Principal Amount

₹ 50.13 lakh

Interest Amount

₹ 11.58 lakh

Total Payable₹ 61.71 lakh

Car Loan Interest Rates — Bank Comparison 2026

Compare the lowest car loan interest rates in India. Enter any bank's rate into the calculator above to check your exact EMI.

Bank	Starting Rate	Type	Best For
LowestUnion Bank of India	7.40% p.a.	Public Bank	High CIBIL, salaried
LowestCanara Bank	7.45% p.a.	Public Bank	High CIBIL, salaried
Punjab National Bank	7.60% p.a.	Public Bank	High CIBIL, salaried
Bank of Baroda	7.60% p.a.	Public Bank	High CIBIL, salaried
HDFC Bank	8.15% p.a.	Private Bank	Fast approval, pre-approved
SBI	8.70% p.a.	Public Bank	High CIBIL, salaried
ICICI Bank	8.50% p.a.	Private Bank	Fast approval, pre-approved
Axis Bank	8.75% p.a.	Private Bank	Fast approval, pre-approved

Rates are indicative as of April 2026. Actual rate depends on your CIBIL score, loan amount, and bank policy. Always verify with your bank before applying.

What is a
Car & Bike EMI Calculator?

A car loan EMI calculator is a free online tool that instantly computes your Equated Monthly Instalment (EMI) based on three inputs — your loan amount, interest rate, and repayment tenure. It removes the guesswork from vehicle financing and helps you budget accurately before approaching any bank or dealer.

Carbike4u's EMI calculator works equally well for car loans and bike or two-wheeler loans across all major Indian banks — SBI, HDFC, ICICI, PNB, Canara Bank and more. Simply enter the applicable interest rate for your bank and loan type to get instant results.

Unlike manual calculations that are error-prone, this tool uses the standard banking formula — EMI = P × R × (1+R)^N / [(1+R)^N − 1] — and gives you a full breakdown: monthly EMI, total interest payable, and total repayment amount.

One of the biggest advantages: you can compare multiple scenarios in minutes. Try different loan amounts, interest rates from different banks, or tenures to find the EMI that fits your monthly budget — all for free, anytime, anywhere.

How to Use Carbike4u's Car & Bike EMI Calculator

Enter Loan Amount

Enter the principal amount you plan to borrow from the bank. Remember, banks typically finance 80–90% of the on-road price, so factor in your 10–20% down payment.

Enter Interest Rate

Enter the annual interest rate offered by your bank. In 2026, rates range from 7.40% (Union Bank) to 9.85% (SBI) for new cars. Check your bank's rate based on your CIBIL score.

Enter Loan Tenure

Select the loan repayment period in years (1–7 years for new cars, up to 5 years for used cars). A longer tenure means lower EMIs but higher total interest paid.

View Your EMI

Instantly see your monthly EMI, total interest payable, and total repayment amount. Adjust sliders to compare different loan scenarios before approaching any bank or dealer.

What is Eligibility and Documents Required for Car Loan?

Who can apply?

You must be an Indian citizen.

Age: 21-65 Years

Credit Score: A score of 700 or higher is considered good.

Salaried: Salaried individuals must earn a salary up to 25000 or 3 lakh per annum.

Self-Employed: Minimum 2-3 years of experience in the same business.

Also eligible: Proprietors, partnership firms, private limited companies, and trusts.

Car Loan EMI Calculator India 2026 — Plan Before You Buy

Buying a car is one of the biggest financial decisions for most Indian families. With on-road prices ranging from ₹5 lakh for entry hatchbacks to ₹30 lakh+ for premium SUVs, most buyers rely on a bank car loan combined with a down payment. Using Carbike4u's free car loan EMI calculator before visiting a showroom gives you a clear monthly budget and puts you in a stronger negotiating position.

How Loan Tenure Affects Your Total EMI Cost

Choosing the right tenure is critical. On a ₹8 lakh loan at 9% for 5 years — your monthly EMI is ₹16,607 and total interest paid is ₹99,420. Extend to 7 years and the EMI drops to ₹12,817, but total interest rises to ₹1,27,628 — that's ₹28,208 extra for a lower monthly bill. Always run both scenarios on the calculator before deciding your tenure.

Bike Loan EMI — Two-Wheeler Financing in India

Two-wheeler loans in India cover motorcycles, scooters, and electric bikes. Interest rates for bike loans typically range from 11.70% (Bank of Baroda) to 18% (ICICI Bank) depending on your credit profile. Most banks offer tenures of up to 5 years. Whether you're financing a Honda Activa, Royal Enfield, or an electric scooter, use the EMI calculator above by entering your bike's loan amount and the applicable interest rate.

SBI vs HDFC vs ICICI — Which Bank Gives the Best Car Loan EMI?

Public sector banks like SBI, Union Bank, and Canara Bank offer the lowest car loan rates — starting from 7.40% — ideal for salaried applicants with a 750+ CIBIL score. Private banks like HDFC and ICICI charge slightly more (8.15%–8.50%) but offer faster approvals, 100% on-road funding, and step-up EMI structures for young professionals. Use the rate comparison table on this page and plug each bank's rate into the calculator to compare true monthly costs.

EV & Electric Car Loan EMI in India

Electric vehicle loans often come with special interest rate benefits and state subsidies in India. Several banks and NBFCs offer EV car loans starting from 7.5% with extended tenures of up to 8 years (HDFC Bank offers up to 8 years for EVs). If you're buying a Tata Nexon EV, MG Windsor, or any electric car, use the calculator above — just enter the EV on-road price, minus your down payment, to get your monthly EMI estimate.

Tenure comparison — ₹8 lakh car loan at 9%

₹16,607 / mo

5-year tenure

Total interest: ₹99,420

₹12,817 / mo

7-year tenure

Total interest: ₹1,27,628 (+₹28,208)

Always compare tenures using the calculator above before finalising your loan.

All EMI figures are indicative. Actual EMI varies by lender processing fees, insurance add-ons, and final loan terms. Interest rates are indicative and subject to change — verify current rates directly with your bank before applying.

Car & Bike Loan EMI Calculator — FAQs

An Equated Monthly Instalment (EMI) is a fixed monthly payment you make to repay your car loan. It includes both the principal amount and the interest. Your EMI stays constant throughout the loan tenure, making monthly budgeting easy and predictable.

Car loan EMI is calculated using the formula: EMI = P × R × (1+R)^N / [(1+R)^N − 1]. Here, P is the principal loan amount, R is the monthly interest rate (annual rate ÷ 12 ÷ 100), and N is the tenure in months. Carbike4u's free EMI calculator does this instantly.

As of 2026, Union Bank of India offers the lowest car loan interest rate starting at 7.40% p.a., followed by Canara Bank at 7.45% and Punjab National Bank at 7.60%. These rates are for salaried applicants with a CIBIL score of 750+.

New car loans in India are available for 1–7 years. For used or pre-owned cars, the maximum tenure is typically 5 years. Longer tenures mean lower monthly EMIs but a higher total interest outgo over the loan period.

A CIBIL score of 700 or above is required for most banks to approve a car loan. A score of 750+ qualifies you for the lowest interest rates. If your score is below 700, you may still get a loan but at a higher interest rate.

Yes. Carbike4u's EMI calculator works for both car and bike loans. Simply enter your two-wheeler loan amount, the applicable interest rate (typically 11.70%–18% for bikes), and the tenure (up to 5 years) to get your monthly bike loan EMI instantly.

For a ₹10 lakh car loan at 8.5% interest for 5 years, the monthly EMI is approximately ₹20,517. At a 7.5% rate for 7 years, the EMI drops to around ₹15,232. Use the calculator above to check EMI for your exact loan amount and rate.

Missing an EMI attracts a late payment penalty of ₹500–₹1,200 and a penal interest rate of 1–4% on the overdue amount. More importantly, it negatively impacts your CIBIL score, which can affect future loan and credit card approvals.

Yes. Common charges include processing fees (0.25%–2% of loan amount), documentation charges, prepayment penalties (1–5% of outstanding amount), and insurance bundling. Use Carbike4u's EMI calculator to estimate the true cost before finalising any loan.

Salaried individuals can typically get a car loan of up to 48 times their net monthly salary, subject to a minimum annual income of ₹2.5 lakh. The applicant must be aged 21–65 years and have a stable employment history of at least 1 year.

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